Income taxes (Tables)

12 Months Ended

Dec. 31, 2023

Components of income tax (expense) / credit

	Year ended December 31,
	2023			2022			2021
	US$’000			US$’000			US$’000
Current taxes (expense )
Hong Kong profits tax and the PRC EIT		(45	)		-			(57	)
Income tax expense		(45	)		-			(57	)
Deferred tax (expenses) / credit
Hong Kong and the PRC		-			(24	)		147
Total deferred tax (expenses) / credit		-			(24	)		147
Total (expense) / credit		(45	)		(24	)		90

Reconciling items from income tax

	Year ended December 31,
	2023			2022			2021
	US$’000			US$’000			US$’000
Income before income taxes		1,695			563			1,276
Computed tax using respective companies’ statutory tax rates		78			131			158
Change in valuation allowances		(79	)		58			349
Under-provision for income taxes in prior years		-			-			(12	)
Non-deductible expenses		(44	)		(213	)		(405	)
Income tax (expense) / credit at effective tax rate		(45	)		(24	)		90

Components of deferred tax assets

	December 31,
	2023			2022
	US$’000			US$’000
Tax losses		572			649
Temporary differences		-			-
Less: Valuation allowances		(469	)		(541	)
Net deferred tax assets		103			108

ZHEJIANG TIANLAN

Components of income tax (expense) / credit

	Year ended December 31,
	2023		2022			2021
	RMB’000		RMB’000			RMB’000
Current tax expense / (credit)
PRC EIT		7,340		(7	)		(32	)
Income tax expense / (credit)		7,340		(7	)		(32	)
Deferred tax expense / (credit)		8,729		(361	)		(666	)
Total deferred tax expense / (credit)		8,729		(361	)		(666	)
Total expense / (credit)		16,069		(368	)		(698	)

Reconciling items from income tax

	Year ended  December 31,
	2023			2022			2021
	RMB’000			RMB’000			RMB’000
Income before income tax		86,606			15,398			12,880
Computed tax using respective companies’ statutory tax rates		12,991			2,309			1,932
(Over)-provision for income tax in prior years		(591	)		(69	)		(39	)
Temporary differences		2,931			2,089			401
Tax effect of revenue not subject to tax					3			-
Tax effect of expenses not deductible for tax purposes		4,472			500			286
Tax effect of special deduction for research and development costs		(3,734	)		(5,257	)		(3,263	)
Others					57			15
Income taxes expense /(credit) at effective tax rate		16,069			(368	)		(698	)

Components of deferred tax assets

	December 31,
	2023		2022
	RMB’000		RMB’000
Allowance for doubtful accounts		4,218		5,680
Deferred government grant		213		154
Impairment losses on assets		1,508		5,978
Tax losses		-		2,854
Total deferred tax assets		5,939		14,666